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Applications
for Transfer of Control in Mergers and Acquisitions
Telecommunications
carriers seeking to transfer assets or corporate control in mergers and
acquisitions must first receive approval from the FCC. The
Commission examines the public interest impact of a proposed domestic
or international transaction.
Pursuant to Section
214 of the Communications Act of
1934 (link in left-hand navigation panel), sections 63.03
and 63.04
of the Commission's rules govern procedures for domestic transfer of
control/asset applications. The rules also:
- Provide guidance
on pro forma transfers
- Provide for
jointly-filed applications for domestic and international services
- Describe six
categories of transactions that are presumptively accorded streamlined
treatment resulting in an automatic grant 31 days following public
notice of the application.
Carriers must file
a discontinuance
application when an acquisition
will result in a reduction or impairment of service.
In any
transaction, carriers acquiring all or part of another carrier's
subscriber base must notify subscribers and meet other requirements in
section 64.1120(e)
of the Commission's rules.
International
mergers and acquisitions are subject to section 63.24
of the FCC’s rules. International applications are
reviewed by the International Bureau.
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